Netherlands-based social impact investor Oikocredit has invested in BizCapital, a Brazilian fintech that provides financial solutions for small and medium-sized enterprises.
Oikocredit has invested US$3m in BizCapital, bringing the company’s total Series B round to US$15m.
The new money will be used in the development of new product offerings and expansion of distribution channels that will allow the fintech to expand its reach to even more SMEs across Brazil.
In June 2020, BizCapital announced its initial Series B investment round, with $US12mn led by the German development finance institution DEG (a subsidiary of KfW Group, Germany’s promotional bank). Additional investment from MELI Fund (the Corporate Venture Capital Fund of MercadoLivre) as well as Quona Capital, Monashees, Chromo Invest and 42K Investments.
Francisco Ferreira, BizCapital Co-founder and CEO, said: “We know that small businesses were directly impacted by the COVID-19 crisis, and this additional investment helps BizCapital offer alternative solutions to these entrepreneurs.”
The impact of COVID-19 is apparent from an increase in total loans processed by the fintech during the pandemic, with 6,000 loans total having been provided from launch until June to nearly 10,000 by September.
Nicolás Arrosa, Equity Analyst, of Oikocredit, added: “Oikocredit is excited to enter into this new partnership and we believe in BizCapital’s growth potential and experienced management team. We support the company’s mission of promoting responsible financial inclusion and generating meaningful social impact by creating thousands of jobs in Brazil.”
